A Firm Requires an Investment of $30,000 and Will Return

question 86

Multiple Choice

A firm requires an investment of $30,000 and will return $35,000 after 1 year.If the firm borrows $20,000 at 10% what is the return on levered equity?

• A)43%
• B)30%
• C)37%
• D)39%

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Definitions:

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price during a specific time period.

Quantity Demanded

The aggregate quantity of a product or service that buyers are ready and capable of buying at a particular price point.

Surplus

An excess of what is needed or used, typically referring to goods, services, or resources exceeding what is required.

OPEC

The Organization of the Petroleum Exporting Countries, a group of oil-producing nations that coordinate petroleum policies and prices globally.